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A few key filings from the creditors and trustee in the last 2 days:
1. US trustee's objection to debtor's request for relief on reporting requirements. Basically, debtors have agreed to file on Feb 22nd income statement and balance sheet of consolidated and of all subs. Trustee is asking they also file cash flow statements Link . This was expected as with last week's cash flow projection filing of just the 2 debtor entities, there were quite a few open questions.
2. Creditors objection to sale procedures. They want to make it easier for competition bids to maximize the asset value. They also want to be able to accept offers for combined businesses. Link
3. Creditors objection to the management key incentive plan and rightfully so. They have a stalking horse(binding) bid for $55 million and the key incentive plan pays incentives to Management if the STB is sold for $45 million!
4. Creditors objection to certain pre-petition wages/benefits approx $6 million Link
"The Committee objects to the Motion on two fundamental grounds:
(i) any allowed payment of PTO should be capped at the statutory limit of$l 1,725 per
employee; and (ii) there is no statutory basis for priority payment of either the Severance or
SAIP Benefits because they are pre-petition obligations by their terms - and under the applicable